I noticed the indicator light last week when I started the car heading home from the office. The car was parked where it usually resides, however the outside temp was high 80's. I started the car, the light was yellow, I drove on home. On the way the indicator went out. Later the night after arriving home, we had to go out for an errand and the light did not reappear. So I figured it was a fluke. I read the owners manual and learned yellow means 'there is a problem in the electro-mechanical power steering.'

This weekend I was city driving at slow speeds and I noticed the light was back on yellow. I'm pretty sure at one point I saw the indicator turn from yellow to red briefly and then back to yellow. It remainded yellow for the next 20 or so miles. While yellow, I seem to notice a bit more resistance when steering, as if the power steering was disabled. After parking for a few hours, jumped in and drove home - no light whatsoever. Hmm.

Today I left work, it was a hot one here at 90 degrees. I started it up, yellow indicator, no noticeable steering resitstance. I drove a couple of miles and got on the highway, then it turned red and stayed there. This has me more worried. I have NOT seen a flashing red or heard any audible beeps.

So, I'm not sure if a call into a local shop is due. I don't have a vagcom here but can get one in the next week or two. Seeing this intermittently but more frequently has got me nervous.

No odors, no odd sounds, no leaks underneath (I see water from the air conditioner on the ground), no other unusual symptoms or behaviors.

Suggestions on where to start troubleshooting? Appreciate the assitance.

Your vehicle does not have a typical hydraulic power steering system, instead it has a electric actuator that assists the steering.
Get your vehicle (VAG-COM) scan for codes and post the VW fault codes or do a forum search once you have the fault codes.
Good Luck

When the light was red on mine, the power steering cut out completely. Luckily, mine stopped giving me trouble before I even took a look at the module. I'd say the module is going bad or at least in my case, more likely the wiring to the module. It has now been 6+ months since I've had any problems. But with this being said, my car is a bit of a PITA as MIL come on, stay for a couple weeks, and go away.